Downtown Businesses Caught in Middle of Development Dispute

Downtown East Lansing businesses are caught in the crossfire of a dispute between the city and the owners of most of the Bailey Street parking lot, said Jon Howard, the owner of Flat, Black and Circular record store. 

The Metzger-Fabian families own 71% of the Bailey Street surface parking lot, and the city owns the remainder. In 2022, city officials told the families that they would not enter a long-term parking agreement because they want the land to be developed, Bob Metzger previously told East Lansing Info. The families have brought in three different developers over the years who proposed a few developments at the site, but none ever materialized. 

The most recent developer, Tareen Development Partners, or TDP, proposed different versions of an apartment complex, including one with public parking to replace the spaces lost. However, after the council declined to vote on the proposal with parking at a meeting in March, the developers returned with a revised plan without parking, a proposal that was eventually rejected. Following the rejection, TDP filed a lawsuit in the Ingham County Circuit Court against the city. In response to the development gridlock, on Oct. 2 the families followed through on a promise to terminate their parking agreement with the city and block off their spaces in the lot.

“I did not think they would pull this move,” Howard said. “This was like the 3rd or 4th development that got turned down … I can see where they’re trying to put the screws to the city but it also messes up the businesses on this block and [the] block next to us.” 

Although there are a handful of spots still available on the city-owned side, nearby businesses who relied on that parking are facing an immediate loss. Peanut Barrel owner Mike Krueger told ELi that he already started losing business from out-of-town customers who called the restaurant after finding the spots blocked off. Unsure where to park, customers were told by Krueger to use the Division Street parking garage, the Bailey parking garage or the remaining city-owned spots in the surface lot. 

“Two of the three were full at that time, and it sounds like they drove around for a while and they called and said they just gave up because they couldn’t find parking,” Krueger said. 

Accessibility has quickly become a major worry across the block. Krueger noted that regular customers with mobility challenges now have to park and walk a few blocks; Howard shares that worry for his senior customers and those who use wheelchairs. 

“It’s a big hindrance,” he said.

Howard has also fielded multiple calls from out-of-town visitors, directing them to nearby structures or allowing them to temporarily pull into the alley for heavy unloading, as some customers sell heavy boxes full of records. 

Recharged Pilates opened a year ago, and owner Olivia Harris told ELi that parking was the primary reason she chose her location along Grand River Avenue instead of other vacant downtown spots.  

“Truthfully I probably would’ve expanded my search for a location to be outside of just the downtown district … knowing that there wasn’t, in my mind, a perfect parking option, because parking is important,” Harris said. 

She said that 75% of her customers utilized the Bailey surface lot parking, consisting of a mix of local residents, commuters from the greater Lansing area, and students. For student clients who frequently book a session in between classes, the lot’s location directly behind the building allowed them to slip in and out quickly. 

“I could see after a few weeks of giving it a try, seeing that they have to consistently park and walk … dropping their membership and me losing their business because of that,” Harris said, adding she also anticipates a winter drop-off. 

Safety is another concern for her early 5 a.m. and late 8 p.m. classes, because the majority of her clients are women who may not feel comfortable walking alone when it’s dark. 

“As the instructor, I’m here as well and truthfully, sometimes it is not feeling like the safest place down here, the same goes for being the last to leave at night,” Harris said. 

To support the area’s businesses during this time, Downtown Development Authority Director Lori Mullins said the city has discussed adding signage for alternative parking and boosting social media advertising. The DDA also held a coffee hour to discuss compounding pressures, including nearby construction. 

The Student Book Store was recently demolished to make way for a new high-rise apartment called “The Howard,” which was approved by the City Council. Because the new development does not include on-site parking, the developers are leasing 224 spaces directly from existing city parking garages. It leaves local business owners skeptical of what downtown parking will look like if another project eventually replaces the Bailey Street lot.

“We know we need the parking there, and with the other development … we can’t have two developments and expect both of them to use Division Street garage. This is not realistic,” Krueger said.